Affiliate Marketing: Commission Fee Calculation

You can configure the calculation method and lock-up period for commission fees in your store’s distribution system. Once you have set up these settings, commission fees for generated distribution orders will be calculated accordingly and locked for a specified duration.

Commission Calculation

Two methods are available for calculating the commission fee in the current distribution system for the Product commission rate commission fee type. You can choose either of them according to your store’s needs.

Commission on Discounted Price (Recommended)

When the Commission on discounted price option is selected, the distribution system will calculate the commission fee based on the actual payment amount for each item in the order. The actual payment amount for products refers to the discounted price of the items in the order, excluding any additional charges such as shipping fees, taxes, or tips.

When you choose this calculation method, the distribution system will automatically recalculate the commission fee and prompt you to review the order if any modifications or refunds are made during the commission lock-up period. Once the commission fee lock-up period has expired, the distribution system will no longer recalculate the commission fee.

Commission on Retail Price

When the Commission on retail price option is selected, the distribution system will calculate the commission fee based on the selling price of each item in the order. The retail price of a product refers to the listed price at which the item is sold in an order without any discounts applied. This price excludes additional fees, such as shipping, taxes, or tips.

When you enable this calculation method, the commission fee for distribution orders will be based on the selling price of the products in the order. The resulting commission fee will remain constant and represents the final amount that can be earned by the distributor. Regardless of any modifications or refunds made to your distribution orders, the system will not recalculate the commission fee. This applies to both orders within and outside the commission lock-up period.

You can also choose to disable the commission lock-up period when selecting the Commission on retail price option.

Steps:

1. In the Affiliate Marketing System, go to Settings > Commission calculation.
2. Select your preferred commission calculation method in the Commission calculation setting area.
3. Click Update.

Commission Lock-up Period

Commission Lock-Up Period Concept

• The commission lock-up period is established to safeguard your funds from any potential impact caused by refund requests or similar actions.
  • When you select the Commission on discounted price option, any modifications or refunds made to orders during the commission lock-up period will impact the commission fee for those orders. In such cases, the distribution system will recalculate the commission fee and prompt you to review the orders once more.Once the commission lock-up period for an order expires, any subsequent modifications made to the order will not impact the associated commission fee. The distribution system will not recalculate the commission fee in such cases.

  • When you select the Commission on retail price option, the final commission fee will be automatically calculated upon order generation. Please note that there will be no further modifications to the commission fee, regardless of whether the distribution order is within the commission lock-up period or not.

    Note: If you choose the Fixed commission type (Coupons & Reward > Multi-level > the Commission distribution section), any modifications or refunds made to orders during the commission lock-up period will affect the commission fee for that specific order. The distribution system will recalculate the commission fee and prompt you to review the order. However, if you select the Fixed commission type for the entire order, the final commission fee will be calculated after the order is generated and will remain unchanged, regardless of whether the distribution order falls within the commission lock-up period or not.

• Once your order exceeds the commission lock-up period and is approved, it will be included in the billing statistics. Therefore, please carefully review the distribution orders.

• Orders that have not exceeded the commission lock-up period or have not been approved will not be included in the billing statistics.
• You can set the commission lock-up period according to your preferences, with a default duration and a maximum limit of 30 days.
• When you select the Commission on retail price option, you can disable the commission lock-up period. When disabled, distribution orders will not be subject to a commission lock-up period and will be included in the bill immediately upon approval (applies only when the Commission on retail price option is selected).

Steps:

1. In the Affiliate Marketing System, go to Settings > Commission fee calculation.
2. Set the commission lock-up period in the Commission lock-up period settings area.

•  
  • Enable/Disable
    • When you select the Commission on discounted price option, the commission lock-up period cannot be disabled.
    • When you select the Commission on retail price option, the commission lock-up period can be disabled.
  • Commission Lock-Up Period Duration
    • Modify the commission lock-up period based on your preferences. You can select a duration from 1 to 30 days. By default, it is set to 30 days.

3. Click Update.

Discount Code Tracking

The Discount code tracking section controls whether orders placed with an affiliate discount code earn commission, and whether that discount code is automatically applied to a customer’s cart when they arrive through an affiliate’s link.

Allowing Commissions on Discount Code Orders

In the Affiliate discount code allows commissions for the affiliate section, you can control whether affiliates earn commissions on orders placed using their affiliate discount codes. 

To configure this setting:

1. From the Affiliate Marketing System, go to Settings, then click Commission calculation.

2. In the Discount code tracking section, configure Affiliate discount code allows commissions for the affiliate:

   • Enabled: Customers can apply an affiliate’s discount code to their order, and the affiliate earns commission on that order.
   • Disabled: Customers can still apply the discount code, but no commission is generated for the affiliate.

   

3. Click Update to save your changes.

Choosing an Auto-Apply Mode

The Auto-apply setting controls whether an affiliate’s discount code is automatically applied to a customer’s cart when they enter your store through an affiliate link, or whether the customer needs to enter the code manually.

To choose an auto-apply mode:

1. In the Affiliate Marketing System, go to Settings and click Commission calculation.

2. In the Discount code tracking section, under Auto-apply, select one of the following modes:

   

• Global on: Discount codes automatically apply to all affiliate links across all affiliates. Auto-apply settings configured at the discount, group, affiliate, or link level are ignored.
• Global off: Discount codes are not applied automatically. Customers see a pop-up with the discount code and must copy and enter it manually. Auto-apply settings configured at the discount, group, affiliate, or link level are ignored.
• Custom: Auto-apply is controlled separately at each level: base discount, specific group discount, specific affiliate discount, and individual promotion link. See "Affiliate Marketing: Setting Up Affiliate Discounts" for details on configuring each level.

3. Click Update to save your changes.

Commission Calculation for Affiliates with Multiple Promotion Links

Commission fees are always calculated using the affiliate’s current group, not the specific promotion link a customer used to reach your store. If an affiliate has multiple promotion links, every order they generate is calculated using the same commission rules for that affiliate’s group — regardless of which link brought in the customer.

For example, if an affiliate moves from your Standard group to your VIP group, every new order after the move is calculated using the VIP group’s commission rate, even if the order came through a promotion link the affiliate created before the move. Promotion links only control the landing page and discount behavior a customer sees — not the commission rate.